Economists surveyed by MarketWatch had produced a consensus forecast for a rise of just 80,000 in November nonfarm payrolls, while the unemployment rate was expected to remain unchanged at 7.9%. Expectations were affected by uncertainty over the impact of Hurricane Sandy.

Payrolls provided a “good number,” but don’t necessarily leave the labor market in any stronger shape than was previously penciled in, said Jeremy Stretch, currency strategist at CIBC in London.

With payrolls out of the way, investor focus is likely to turn back toward negotiations on the so-called fiscal cliff, which remains the overarching macroeconomic theme for the dollar and other financial markets.

“We’ve probably seen the highs in the euro for the time being,” said Dean Popplewell, chief currency strategist at trading platform Oanda. “The only reason I’ve found supporting the euro is that the ECB was the ultimate backstop. Now that they’re more dovish, it doesn’t warrant pushing the euro higher.”

Also, the German Bundesbank slashed its 2013 forecast for the German economy. See: Some bad news about that German growth engine.

Against the Japanese yen, the dollar spiked higher after the jobs report, then pared gains to trade at 82.44 Japanese yen , compared with ¥82.39 on Thursday and a similar level ahead of the payrolls release. For the week, the dollar remains down 0.3%.

Japanese earthquake

A subsequent tsunami warning was lifted. Yen crosses rebounded after it was clear the temblor was smaller and much less destructive than the massive quake that struck the country in March 2011, analysts said.

The Canadian dollar also saw a quick turnaround after it’s own employment report also came in significantly stronger than analysts expected. Canada’s economy added 59,000 jobs in November, and the unemployment rate declined to 7.2%, Statistics Canada reported. See Canadian jobs data.

The U.S. dollar turned down, but pared losses to lately trade little changed at 99.12 Canadian cents.

“Canada’s numbers came in 500% better than most expectations and the US. comes in around 100% better,” Popplewell said.

The British pound changed hands at $1.6041, down from $1.6055.

The Australian dollar fetched $1.0490, compared from $1.0478 Thursday.

Economists surveyed by MarketWatch had produced a consensus forecast for a rise of just 80,000 in November nonfarm payrolls, while the unemployment rate was expected to remain unchanged at 7.9%. Expectations were affected by uncertainty over the impact of Hurricane Sandy.

Payrolls provided a “good number,” but don’t necessarily leave the labor market in any stronger shape than was previously penciled in, said Jeremy Stretch, currency strategist at CIBC in London.

With payrolls out of the way, investor focus is likely to turn back toward negotiations on the so-called fiscal cliff, which remains the overarching macroeconomic theme for the dollar and other financial markets.

“We’ve probably seen the highs in the euro for the time being,” said Dean Popplewell, chief currency strategist at trading platform Oanda. “The only reason I’ve found supporting the euro is that the ECB was the ultimate backstop. Now that they’re more dovish, it doesn’t warrant pushing the euro higher.”

Also, the German Bundesbank slashed its 2013 forecast for the German economy. See: Some bad news about that German growth engine.

Against the Japanese yen, the dollar spiked higher after the jobs report, then pared gains to trade at 82.44 Japanese yen , compared with ¥82.39 on Thursday and a similar level ahead of the payrolls release. For the week, the dollar remains down 0.3%.

Japanese earthquake

A subsequent tsunami warning was lifted. Yen crosses rebounded after it was clear the temblor was smaller and much less destructive than the massive quake that struck the country in March 2011, analysts said.

The Canadian dollar also saw a quick turnaround after it’s own employment report also came in significantly stronger than analysts expected. Canada’s economy added 59,000 jobs in November, and the unemployment rate declined to 7.2%, Statistics Canada reported. See Canadian jobs data.

The U.S. dollar turned down, but pared losses to lately trade little changed at 99.12 Canadian cents.

“Canada’s numbers came in 500% better than most expectations and the US. comes in around 100% better,” Popplewell said.

The British pound changed hands at $1.6041, down from $1.6055.

The Australian dollar fetched $1.0490, compared from $1.0478 Thursday.